02 15-14 shiseido results-q3-1

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02 15-14 shiseido results-q3-1

  1. 1. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2014 The figures for these Financial Statements are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Annual Report issued by the Company, which present the same statements in a form that is more familiar to foreign readers through certain reclassifications or summarization of accounts. Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2013 [Japanese Standards] Shiseido Company, Limited Listings: URL: Representative: Contact: Tokyo Stock Exchange, First Section (Code Number: 4911) http://group.shiseido.com/ Shinzo Maeda, Representative Director, Chairman of the Board, President, & CEO Hirofumi Takakura, Head of Investor Relations Department Tel. +81-3-3572-5111 Filing of quarterly financial report: February 12, 2014 Start of cash dividend payments: — Supplementary quarterly materials prepared: Yes (Supplemental information will be uploaded to the corporate website on Friday, January 31, 2014.) Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.) 1. Performance for the First 3 Quarters of the Fiscal Year Ending March 31, 2014 (From April 1–December 31, 2013) * Amounts under one million yen have been rounded down. (1) Consolidated Operating Results (Millions of yen; percentage figures denote year-on-year change) Net Sales First 3 Quarters Ended December 31, 2013 First 3 Quarters Ended December 31, 2012 Operating Income Ordinary Income Net Income 535,398 [+10.4%] 33,344 [+264.3%] 35,386 [+250.7%] 16,748 [+267.2%] 484,788 [–1.2%] 9,151 [–65.8%] 10,090 [–62.6%] 4,561 [–21.0%] Note: Comprehensive income First 3 quarters ended December 31, 2013: ¥56,418 million [+804.3%] First 3 quarters ended December 31, 2012: ¥6,238 million [—%] Net Income per Share (Yen) First 3 Quarters Ended December 31, 2013 First 3 Quarters Ended December 31, 2012 Fully Diluted Net Income per Share (Yen) 42.06 41.99 11.46 11.45
  2. 2. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (2) Consolidated Financial Position (Millions of yen) Total Assets Net Assets Equity Ratio (%) 737,996 345,810 44.2 715,593 303,153 40.1 First 3 Quarters Ended December 31, 2013 Fiscal Year Ended March 31, 2013 [Reference] Equity: First 3 quarters ended December 31, 2013: ¥326,130 million Fiscal year ended March 31, 2013: ¥287,069 million The Company has applied International Accounting Standard No. 19, “Employee Benefits” (amended June 16, 2011), to certain consolidated subsidiaries. This has resulted in a change in recognition of changes in the Company’s net defined benefit liabilities and has been applied retrospectively to the consolidated financial statements for fiscal 2012, ended March 31, 2013. For more details, refer to “(3) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements” under “2. Summary (Note) Information” on page 7 of this document. 2. Cash Dividends Cash Dividends per Share (Yen) First Quarter Second Quarter Third Quarter — 25.00 — 10.00 25.00 50.00 20.00 — Fiscal Year Ending March 31, 2014 Full Year 10.00 Fiscal Year Ended March 31, 2013 Year-End — Fiscal Year Ending March 31, 2014 (plan) Note: Revision to dividend forecast during period: None 3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2014 (From April 1, 2013–March 31, 2014) (Millions of yen, percentage figures denote year-on-year change) Net Sales Fiscal Year Ending March 31, 2014 Operating Income Ordinary Income 750,000[+10.7%] 42,000 [+61.3%] 44,000 [+54.9%] Net Income 19,000 [ —] Net Income per Share (Yen) 47.69 Note: Revision to consolidated earnings forecast during period: Yes * Note (1) Significant changes in subsidiaries during period (changes in specific subsidiaries due to change in scope of consolidation): None (2) Special accounting treatment adopted: None (3) Changes in accounting policies; changes in accounting estimates; restatements 1) Changes in accounting policies due to amendment of accounting standards: Yes 2) Other changes in accounting policies: None 3) Changes in accounting estimates: None 4) Restatements: None 2
  3. 3. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (4) Shares outstanding (common stock) at term-end 1. Number of shares outstanding (including treasury stock) First 3 quarters ended December 31, 2013: 400,000,000 Fiscal year ended March 31, 2013: 400,000,000 2. Number of treasury shares outstanding First 3 quarters ended December 31, 2013:1,578,371 Fiscal year ended March 31, 2013: 1,960,234 3. Average shares outstanding over period (cumulative; consolidated) First 3 quarters ended December 31, 2013: 398,230,426 First 3 quarters ended December 31, 2012: 398,001,610 Implementation status of quarterly review procedures At the time of disclosure of this report, review procedures for quarterly financial statements pursuant to the Financial Instruments and Exchange Act had not been completed. Appropriate use of business forecasts; other special items In this document, statements other than historical facts are forward-looking statements that reflect the Company’s plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. Please refer to “1. (2) Consolidated Forecasts and Other Forward-Looking Information” on page 6 for information on preconditions underlying the above outlook and other related information. 3
  4. 4. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 Contents 1. Analysis of Operating Results ····················································································································· 5 (1) Consolidated Performance ················································································································· 5 (2) Consolidated Forecasts and Other Forward-Looking Information ···················································· 6 2. Summary (Note) Information ······················································································································ 7 (1) Significant Changes in Major Subsidiaries ························································································ 7 (2) Special Accounting Treatment Adopted in Preparation of Consolidated Quarterly Financial Statements ···················································································· 7 (3) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements·························· 7 3. Major Items Related to Going Concern Assumption··················································································· 7 (Reference) Overseas Sales ····························································································································· 8 4. Consolidated Quarterly Financial Statements ····························································································· 9 (1) Consolidated Quarterly Balance Sheets ··························································································· 10 (2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income······················································· 11 (3) Notes Concerning Consolidated Quarterly Financial Statements (Note on Going Concern Assumption) ························································································· 13 (Consolidated Quarterly Statements of Income) ·········································································· 13 (Note in the Event of Major Changes in Shareholders’ Equity) ··················································· 13 4
  5. 5. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 1. Analysis of Operating Results (1) Consolidated Performance In the three-quarter period under review (nine-month period from April 1 to December 31, 2013), the economic sentiment in Japan was characterized by moderate recovery underpinned by government economic measures. The domestic cosmetics market also showed indications of a turnaround. However, there are concerns that consumer sentiment will be dampened by a hike in consumption tax scheduled for April 2014, leaving no room for complacency. Overseas, the Americas and Asia continued posting moderate economic growth, but conditions weakened in Europe. Similarly, cosmetics markets in the Americas and Asia enjoyed sustained growth, while growth in the European market was negative. (For overseas subsidiaries, the “first three quarters” refers to the period from January 1 to September 30, 2013.) In this environment, the Shiseido Group allocated resources to strong, big, and highly profitable fields under its “distinction and concentration” policy. To this end, we focused on reinforcing our strengths in three areas: Japan, China, and Bare Escentuals, Inc. As a result, the Group posted consolidated net sales of ¥535.4 billion, up 10.4% from the previous corresponding period. Despite healthy performances by MAQuillAGE and ELIXIR—which are core lines in the mid-priced range—sales in the Domestic Cosmetics Business segment edged down 0.4%, to ¥251.2 billion. This was due to recovery of inventories aimed at optimizing store-level inventories. The Global Business segment benefited from solid performances by the global brand SHISEIDO and the makeup artist brand NARS, as well as an expanding fragrance business in Europe. However, segment sales grew just 0.3% on a local-currency basis. This was due mainly to a year-on-year sales decline in our Chinese business. After translation into yen, however, segment sales jumped 22.7%, to ¥276.8 billion, owing to the yen’s depreciating trend. Sales in the Other segment increased 4.4%, to ¥7.4 billion, thanks largely due to a favorable performance by our restaurant business, bolstered by the renewal and reopening of French restaurant L’Osier in October 2013. Operating income surged 264.3%, to ¥33.3 billion, due partly to a marginal gain stemming from higher net sales, as well as cost reductions centered on cost structural reforms. In Japan, we also reduced personnel expenses, including bonuses and pension costs. Ordinary income jumped 250.7%, to ¥35.4 billion, and net income grew 267.2%, to ¥16.7 billion. [Consolidated Performance] (Sales) (Millions of yen) First 3 Quarters Ended December 2013 Share of Total (%) First 3 Quarters Ended December 2012 Share of Total (%) 251,157 46.9% 252,053 52.0% –895 –0.4% –0.4% 276,815 7,424 51.7% 1.4% 225,620 7,114 46.5% 1.5% +51,195 +309 +22.7% +4.4% +0.3% +4.4% Sales Total 535,398 100.0% 484,788 100.0% +50,609 +10.4% +0.0% Domestic Sales 271,436 50.7% 272,689 56.2% –1,253 –0.5% –0.6% Overseas Sales 263,962 49.3% 212,098 43.8% +51,863 +24.5% +0.8% Domestic Cosmetics Business Global Business Others 5 Year-on-Year Increase/Decrease % change in local Amount % change currency terms
  6. 6. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (Income) First 3 Quarters Ratio to Ended Net Sales* December (%) 2013 Domestic Cosmetics Business Global Business Others First 3 Quarters Ended December 2012 Ratio to Net Sales* (%) Year-on-Year Increase/Decrease Amount % change 6.9% +10,601 +60.6% 28,098 11.1% 17,497 3,301 1,604 1.2% 14.5% (9,604) 1,388 (4.2%) 12.7% +12,906 +216 — +15.6% 339 — (128) — +468 — Operating Income Total 33,344 6.2% 9,151 1.9% +24,192 +264.3% Ordinary Income 35,386 6.6% 10,090 2.1% +25,296 +250.7% Net Income 16,748 3.1% 4,561 0.9% +12,186 +267.2% Elimination/Corporate *Based on sales, including intra-Group sales between reportable segments. (2) Consolidated Forecasts and Other Forward-Looking Information In light of its performance in the three-quarter period under review, as well as foreign exchange trends and other factors, the Group has revised its consolidated forecasts for the fiscal year ending March 31, 2014 (previous forecasts announced on October 31, 2013), as shown in the table below. [Consolidated Forecasts for Fiscal 2013] (April 1, 2013–March 31, 2014) Net Sales Operating Income (Millions of yen) Net Income per Share Net Income (yen) Ordinary Income Previous Forecast (A) 740,000 40,000 41,000 15,000 37.66 Revised Forecast (B) 750,000 42,000 44,000 19,000 47.69 Change (B–A) +10,000 +2,000 +3,000 +4,000 Percentage Change (%) [Reference] Result in Previous Year (Fiscal Year Ended March 2013) +1.4% +5.0% 677,727 +7.3% 26,045 28,406 +26.7% (14,685) –36.90 [Sales Outlook by Reportable Segment] Fiscal Year Ending March 31, 2014 (Estimate) Fiscal Year Ended March 31, 2013 (Millions of yen) Year-on-Year Increase/Decrease Amount % Change Domestic Cosmetics Business 340,000 345,882 –5,882 –1.7% Global Business 400,000 322,349 +77,650 +24.1% 10,000 9,494 +505 +5.3% 750,000 677,727 +72,272 +10.7% Others Net Sales 6
  7. 7. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 [Sales Outlook by Region] Fiscal Year Ending March 31, 2014 (Estimate) Fiscal Year Ended March 31, 2013 (Millions of yen) Year-on-Year Increase/Decrease Amount % Change Domestic Sales 367,000 373,252 –6,252 –1.7% Overseas Sales 383,000 304,475 +78,524 +25.8% Overseas Sales Ratio 51.1% 44.9% We base our predictions on the following exchange rate assumptions: ¥97.7 per U.S. dollar, ¥129.7 per euro, and ¥15.9 per Chinese yuan. 2. Summary (Note) Information (1) Significant Changes in Subsidiaries Not applicable. (2) Special Accounting Treatment Adopted Not applicable. (3) Changes in Accounting Policies; Changes in Accounting Estimates; Restatements (Change in accounting policy due to change in accounting standard) Effective the first quarter of fiscal 2013, the Company has applied International Accounting Standard No. 19, “Employee Benefits” (amended June 16, 2011), to certain consolidated subsidiaries. This has resulted in a change in recognition of changes in the Company’s net defined benefit liabilities. The change in accounting policy has been applied retrospectively and is reflected in the consolidated financial statements for the first three quarters of fiscal 2012 (nine months ended December 31, 2012) and the consolidated financial statements for fiscal 2012 (year ended March 31, 2013). Compared with figures prior to retrospective application, deferred tax assets and accrued retirement benefits in the previous fiscal year increased by ¥215 million and ¥795 million, respectively, as a result of the change, while retained earnings, adjustment for retirement benefits (cumulative), and minority interests in consolidated subsidiaries declined by ¥42 million, ¥440 million, and ¥96 million, respectively. Because the change had minimal effect on the consolidated statements of income in the first three quarters of fiscal 2012, the change is not reflected in the consolidated quarterly statements of income and the consolidated quarterly statements of comprehensive income for that period. However, the cumulative effect on net assets at the beginning of fiscal 2012 has been reflected, with the result that retained earnings, adjustment for retirement benefits (cumulative), and minority interests in consolidated subsidiaries declined by ¥42 million, ¥7 million, and ¥43 million, respectively. 3. Major Items Related to Going Concern Assumption Not applicable. 7
  8. 8. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (Reference) [Overseas Sales] (Millions of yen) First 3 Quarters Ended September 2013 Share of Net Sales First 3 Quarters Ended September 2012 Share of Net Sales Year-on-Year Increase/Decrease % change in local Amount % change currency terms Americas Europe Asia/Oceania 82,967 69,783 111,211 15.5% 13.0% 20.8% 67,042 54,699 90,356 13.8% 11.3% 18.7% +15,924 +15,084 +20,854 +23.8% +27.6% +23.1% +1.4% +2.3% –0.6% Overseas Sales 263,962 49.3% 212,098 43.8% +51,863 +24.5% +0.8% 8
  9. 9. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 4. Consolidated Quarterly Financial Statements (1) Consolidated Quarterly Balance Sheets Fiscal Year Ended March 2013 ASSETS Current Assets: Cash and Time Deposits Notes and Accounts Receivable Short-Term Investments in Securities Inventories Deferred Tax Assets Other Current Assets Less: Allowance for Doubtful Accounts Total Current Assets Fixed Assets: Property, Plant and Equipment: Buildings and Structures Less: Accumulated Depreciation Buildings and Structures (net of depreciation) Machinery, Equipment and Vehicles Less: Accumulated Depreciation Machinery, Equipment and Vehicles (net of depreciation) Fixtures and Fittings Less: Accumulated Depreciation Fixtures and Fittings (net of depreciation) Land Lease Assets Less: Accumulated Depreciation Lease Assets (net of depreciation) Construction in Progress Total Property, Plant and Equipment Intangible Assets: Goodwill Lease Assets Trademarks Other Intangible Assets Total Intangible Assets Investments and Other Assets: Investments in Securities Prepaid Pension Expenses Long-Term Prepaid Expenses Deferred Tax Assets Other Investments Less: Allowance for Doubtful Accounts Total Investments and Other Assets Total Fixed Assets Total Assets 9 (Millions of yen) First 3 Quarters Ended December 2013 59,330 118,232 31,933 84,552 24,943 14,712 (1,023) 332,681 74,439 107,734 30,808 94,738 22,494 16,918 (1,141) 345,992 158,731 (102,689) 56,042 84,597 (73,018) 11,579 64,078 (44,130) 19,948 31,833 7,517 (4,211) 3,306 5,095 127,805 168,994 (106,920) 62,073 87,514 (75,646) 11,867 70,533 (49,875) 20,658 30,901 7,428 (4,480) 2,947 2,644 131,093 57,127 534 45,246 47,784 150,692 59,961 625 51,124 47,057 158,769 30,510 17,155 10,087 20,589 26,121 (49) 104,413 382,912 715,593 28,231 15,737 10,748 21,117 26,362 (55) 102,141 392,004 737,996
  10. 10. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 Fiscal Year Ended March 2013 LIABILITIES Current Liabilities: Notes and Accounts Payable Short-Term Debt Current Portion of Bonds Payable Current Portion of Long-Term Debt Lease Obligations Other Payables Accrued Income Taxes Reserve for Sales Returns Accrued Bonuses for Employees Accrued Bonuses for Directors Provision for Liabilities and Charges Provision for Structural Reforms Deferred Tax Liabilities Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Bonds Long-Term Debt Lease Obligations Accrued Retirement Benefits Allowance for Losses on Guarantees Allowance for Environmental Measures Provision for Structural Reforms Deferred Tax Liabilities Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities NET ASSETS Shareholders’ Equity: Common Stock Capital Surplus Retained Earnings Less: Treasury Stock, at Cost Total Shareholders’ Equity Valuation and Translation Adjustments: Unrealized Gains on Available-for-Sale Securities, Net of Taxes Foreign Currency Translation Adjustments Adjustment for Retirement Benefits (Cumulative) Total Valuation and Translation Adjustments Stock Acquisition Rights Minority Interests in Consolidated Subsidiaries Total Net Assets Total Liabilities and Net Assets 10 (Millions of yen) First 3 Quarters Ended December 2013 43,542 5,975 — 31,685 1,733 39,627 9,113 10,609 12,493 268 386 361 8 31,417 187,225 46,024 9,305 50,000 5,905 1,508 31,768 5,172 10,591 8,391 267 270 2,470 17 31,901 203,595 90,000 53,028 2,245 44,151 350 445 1,396 28,931 4,665 225,214 412,439 40,000 62,634 2,197 44,721 350 400 1,396 31,987 4,901 188,590 392,186 64,506 70,258 191,476 (3,697) 322,543 64,506 70,258 194,110 (2,977) 325,898 2,799 (37,832) (440) (35,474) 846 15,237 303,153 715,593 4,744 (4,104) (407) 232 920 18,758 345,810 737,996
  11. 11. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income Consolidated Quarterly Statements of Income Cumulative for First 3 Quarters (Millions of yen) First 3 Quarters Ended First 3 Quarters Ended December 2012 December 2013 Net Sales Cost of Sales Gross Profit Selling, General and Administrative Expenses Operating Income Other Income Interest Income Dividend Income Equity in Earnings of Affiliates Rental Income Subsidy Income Foreign Exchange Gain Others Total Other Income Other Expenses Interest Expense Equity in Losses of Affiliates Others Total Other Expenses Ordinary Income Extraordinary Income Gain on Sales of Property, Plant and Equipment Gain on Sales of Investments in Securities Total Extraordinary Income Extraordinary Losses Impairment Loss Structural Reform Expenses Loss on Disposal of Property, Plant and Equipment Loss on Sales of Investments in Securities Loss on Revaluation of Investments in Securities Total Extraordinary Losses Income before Income Taxes Income Taxes – Current Income Tax –Deferred Total Income Taxes Income before Minority Interests Minority Interests in Earnings of Consolidated Subsidiaries Net Income 11 484,788 116,909 367,879 358,727 9,151 535,398 131,515 403,882 370,538 33,344 524 623 27 582 127 287 823 2,995 732 614 — 649 692 935 757 4,381 1,337 — 720 2,057 10,090 1,322 8 1,008 2,339 35,386 267 19 286 1,842 600 2,443 — — 518 10 19 549 9,827 5,998 (1,618) 4,379 5,447 886 4,561 *1 927 5,777 680 4 11 7,400 30,429 10,098 1,615 11,713 18,715 1,967 16,748
  12. 12. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 Consolidated Statements of Comprehensive Income Cumulative for First 3 Quarters (Millions of yen) First 3 Quarters Ended First 3 Quarters Ended December 2012 December 2013 Income before Minority Interests Other Comprehensive Income Valuation Difference on Available-for-Sale Securities Foreign Currency Translation Adjustment Adjustment for Retirement Benefits Share of Other Comprehensive Income of Associates Accounted for Using Equity Method Total Other Comprehensive Income Comprehensive Income (Breakdown) Comprehensive Income Attributable to Owners of Parent Comprehensive Income Attributable to Minority Interests 12 5,447 18,715 221 571 — 2,002 35,614 40 (1) 791 6,238 45 37,702 56,418 5,045 1,193 52,454 3,964
  13. 13. Shiseido Co., Ltd. (4911) Financial Results for the First 3 Quarters of the Fiscal Year Ending March 31, 2013 (3) Notes Concerning Consolidated Quarterly Financial Statements (Note on Going Concern Assumption) Not applicable (Consolidated Quarterly Statements of Income) *1: “Structural Reform Expenses” refers to expenses related to “optimizing store-level inventories” (building frameworks to prevent accumulation of store-level inventories) and “strengthening human resource and personnel cost management.” These are part of one-time expenses pertaining to “structural reforms” (drastic reassessments of organization, infrastructure, and business administration aimed at building a robust business structure). (Note in the Event of Major Changes in Shareholders’ Equity) Not applicable 13

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